Tips for first time home buyers

The process for first-time home buyers is often overwhelming, yet exciting at the same time. It is a process of anticipation and attention, as many decisions need to be made. In other words, have your “ducks in a row” and know what to expect, at least to some point. We hope the following first-time home buyer tips are of help. Many tips offer a link to some more in-depth information on that subject. And if any questions linger, contact us!

Educate yourself about some important basics regarding buying real estate

The more you know, the better decisions you can make! The buying process is oftentimes overwhelming enough as it is. So, get an overall sense of the 7 steps in the home buying process, learn some real estate terminology, educate yourself about the current market, and pre-read the paperwork involved. Educating yourself with some important basics regarding the home buying process keeps the head clear for the important decisions to make. In this article, we show you some important suggestions for self-education.

Start the buying process early

Put your real estate antennas out long before your actual purchase. Give yourself six or even twelve months to do some research and get a sense of the process and the market. In Calgary, realtors can offer to email you a list of homes for sale within your budget, in communities of your choice and with the criteria you are looking for. Looking at homes, even just online for a while, gives you a very good feel of the market, the prices and your options.

Pre-approval is not an approval

A pre-approval is always the first step in the home buying process. Realize that the pre-approval is just that, a pre-approval. Any lender will only approve your mortgage application in combination with the property you have purchased. Also, talk to both your bank and to a mortgage broker. This broker is able to seek out different lenders and venues and oftentimes is able to get you a better rate.

Don’t rely on online mortgage calculators

If anything in real estate is personal, it is a mortgage. Never rely on an online mortgage calculator. Rules and regulations for mortgages (and lending in general) are very personal, and many factors go into the consideration of a mortgage. These online mortgage calculators can only calculate the bare cost per month at a certain interest rate. Other than that, they are intended to capture you as a prospective candidate.

Get your finances straight for your personal situation

The same tip keeps coming back; know your budget. Knowing what you can buy and learning what other costs to expect as a homeowner are the most important steps in the home buying process. Just make sure you are comfortable with the budget, and realize you don’t have to spend your entire budget on a mortgage.

Be realistic about your wants and needs

Granite countertops are a want and not a need. Choosing between two or three bedrooms is more likely considered a need. Location is important, and location is something you cannot change. Overall, realize what you can change, such as that countertop to granite when you can afford it, and what you can’t change like location.

Learn what “Buyer Beware” actually means

In Alberta, the principle of ‘Caveat Emptor,’ or ‘Buyer Beware,’ is a prevailing standard. In legal terms this means the onus is on you, as the buyer, to find out everything about a property before actually buying it. Whereas a seller is required to disclose any known defects to the property, it still requires your due diligence. Therefore, a home inspection, a condominium document review and a history search, amongst other things, are very important.

Find a good realtor who actually takes time for you

We feel it is very important to actually sit down with a realtor and have a thorough conversation about all things real estate. First of all, a bit of a brainstorm session about your personal situation, your goals and your options is more than likely very valuable. Next, buying real estate is a process with 7 important steps to understand. Real estate has do’s and don’ts, potential pitfalls to know about and various costs to learn about. To us that seems the “stuff” of a serious conversation. Besides, this conversation can reveal a lot about the patience, the knowledge and the experience of the realtor.

Interview several realtors

The good news is that in Calgary you can pick from more than 8000 realtors. The bad news is in Calgary you can pick from more than 8000 realtors. There is nothing wrong with interviewing several realtors to find who gives you the best feeling regarding experience and knowledge. Ask the right questions and don’t be blinded by the expensive car. An added tip to this; a brand name doesn’t matter in real estate. Real estate is all about the personality, experience and knowledge of the realtor.

Ask for sold data

Nearly all homes sell via the MLS. Receiving only those homes for sale in your personal portal is a great way to start looking and learning about the real estate market. One tip is to ask the realtor also for the sold prices in this portal. Sold data will help you understand the pace of the current market, how quickly homes sell and how much they sell for. Remember, asking price is just asking price, and sale prices can go under or over asking price and this is usually dictated by the type of market.

To learn more about Calgary’s real estate market you can visit our statistic page or you can visit the live statistics from the Calgary Real Estate Board.

Ask us for a free monthly Market Report

All sold data, including home features, number of days on the market and the ratio list price vs selling price. Sold data is a great way to understand the real estate market in your community.

SOLD DATA FOR CALGARY REAL ESTATE

Online pictures are not always what they seem

“A picture is worth a thousand words”; that is absolutely correct. But every home has a “feel” which cannot be captured. On top of that, in this day and age with wide-angle lenses, filters and manipulation, a photo can sometimes make a home look like a castle. However, the opposite is true, too! Practice teaches that only an actual, in-person visit will show a realistic version of the home, not the photos online.

Don’t believe the news reports

Be aware that real estate markets in Canada are very local

It may sound contradictory to not follow the news, yet the explanation for this is very simple. Most news about real estate is country wide, from Victoria on Vancouver Island to St. John’s in Newfoundland. Many news items combine all those cities and towns in between. However, Toronto and Vancouver dominate the statistics, and those real estate markets are very, very different from the rest of Canada. So, when catching some news about the real estate market, take this tip and always double check which markets are being talked about.

Be aware when buying brand new

Home builders sell their product via show homes. Those show homes are staffed by their own salespeople. These builders and their staff are not licensed and not controlled by any codes of ethics, the way realtors are. By entering a show home without a realtor, you usually lose your right to bring your own representation. So, always discuss with your realtor how to work together on buying brand new.

Nobody has a crystal ball

Nobody can predict where the real estate market is heading. The world affairs are very much intertwined, and some event in one country can affect markets in other countries. The only reliability we have available to us is the past. And it is true that history in real estate shows that homes increase in value, in the long run. That “overpriced” home today has equity in years from now. How many years? No crystal ball can tell us. Even though a realtor may have some idea or prediction of where the real estate market is heading, it remains dependent on just too many factors to predict accurately. One of the best examples is the pandemic and what came from that.

Forget Instant gratification

Buying a home certainly doesn’t bring instant gratification. So, depending on the market and your requirements, patience is key. There is a process in buying a home, and, besides, pressure is never a good motivator. So take your time, be patient and require your realtor to be patient with you, as well.

Stay away from FOMO. But still expect it

The fear of missing out is usually not a good trait when buying a home. Having a clear and realistic plan really helps in the entire process of buying. As mentioned, some education ahead of time is important for this. This plan includes also some thoughts in case you do have to make compromises. Moving further out of the core or deciding on a smaller home are a couple of options. And remember, the real estate market has always gone up and down and opportunities come and go.

Get a free consultation

The last tip and best tip we can offer you is to invite us for free and no-obligation advice for first-time home buyers in Calgary. We will sit down with you to explain the process of buying a home. We will answer your questions, we will brainstorm with you about your options and tell you which mistakes not to make. And we can even explain to you how to save money! This one-on-one chat is absolutely free and with no obligation. And coffee is on us!